CPA Blog

Strickler & Prieto, LLP Has Successful Review By Peers

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Published: Wednesday, 25 May 2016 09:54

Written by Phillip Strickler, CPA.CITP

Strickler & Prieto, LLP is pleased to announce that it has successfully completed a rigorous peer review of its accounting and auditing practice. The reviewer(s) concluded that the firm’s system of quality control for the accounting and auditing practice in effect for the year ended October 31, 2015, has been suitably designed and complied with to provide reasonable assurance of performing and reporting in conformity with applicable professional standards in all material respects.

Strickler & Prieto, LLP participates in the Peer Review Program, a practice monitoring program approved by the American Institute of Certified Public Accountants (AICPA), the national professional organization of CPAs.  A firm participating in the Peer Review Program must have an independent review of its accounting and auditing practice every three years. The review was conducted under the auspices of the Texas Society of Certified Public Accountants following standards issued by the AICPA.

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How to retain your best employees to keep profitability strong

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Published: Tuesday, 24 May 2016 08:44

Written by Phillip Strickler, CPA.CITP

Whether the job market is hot or cold, employers owe it to themselves to actively work at employee retention. Good workers can maintain operational stability and keep profitability strong. Plus, the cost of finding and hiring new employees remains steep. Here are some ideas for keeping your best and brightest on staff.

Trust training

Employees whose job skills are regularly enriched by training feel more skilled — and more valued. Plan a training program that involves carefully selected methods and content. You’ll need to determine whether to do the training in-house or via an outside vendor. An outside vendor may cost more upfront, but it could save you time in planning and present the curriculum more effectively.

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How summer day camp can save you taxes

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Published: Wednesday, 18 May 2016 08:37

Written by Phillip Strickler, CPA.CITP

Although the kids might still be in school for a few more weeks, summer day camp is rapidly approaching for many families. If yours is among them, did you know that sending your child to day camp might make you eligible for a tax credit?

The power of tax credits

Day camp (but not overnight camp) is a qualified expense under the child and dependent care credit, which is worth 20% of qualifying expenses (more if your adjusted gross income is less than $43,000), subject to a cap. For 2016, the maximum expenses allowed for the credit are $3,000 for one qualifying child and $6,000 for two or more.

Remember that tax credits are particularly valuable because they reduce your tax liability dollar-for-dollar — $1 of tax credit saves you $1 of taxes. This differs from deductions, which simply reduce the amount of income subject to tax. For example, if you’re in the 28% tax bracket, $1 of deduction saves you only $0.28 of taxes. So it’s important to take maximum advantage of the tax credits available to you.

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Unexpected retirement plan disqualification can trigger serious tax problems

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Published: Tuesday, 17 May 2016 08:50

Written by Phillip Strickler, CPA.CITP

It’s not unusual for the IRS to conduct audits of qualified employee benefit plans, including 401(k)s. Plan sponsors are expected to stay in compliance with numerous, frequently changing federal laws and regulations.

For example, have you identified all employees eligible for your 401(k) plan and given them the opportunity to make deferral elections? Are employee contributions limited to the amounts allowed under tax law for the calendar year? Does your 401(k) plan pass nondiscrimination tests? Traditional 401(k) plans must be regularly tested to ensure that the contributions don’t discriminate in favor of highly compensated employees.

If the IRS uncovers compliance errors and the plan sponsor doesn’t fix them, the plan could be disqualified.

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